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Mr. Forrest Leaf <br />March 6, 2006 <br />Page 3 <br />The plan estimates that in the event that the operator were to cease mining and <br />dewatering at the site there would be 6.87 acres of exposed water surface located outside of <br />the slurry wall. To provide the security of a permanent, renewable source of replacement <br />water, 2 shares of Kem Reservoir are hereby dedicated to this plan and made appurtenant to <br />the tract of land where the gravel pit is located, until a permanent augmentation plan for the <br />gravel pit has been adjudicated or all consumptive use at the site has ceased and all lagged <br />depletions have been replaced. The depletions resulting from evaporation off of the 6.87 acre <br />pond are estimated to be 19.8 acre-feet. According to the analysis provided in the plan, the 2 <br />shares of Kern Reservoir have a historical consumptive use of 22.69 acre-feet, therefore, the <br />shares are found to be adequate. A copy of this approval letter and a copy of the stock <br />certificate shall be recorded with the Weld County Clerk and Recorder's Office. During the term <br />of this substitute water supply plan the 2 shares of Kem Reservoir may continue to be used for <br />irrigation as long as the depletions caused by the pit are covered by other approved sources. <br />A monthly breakdown of depletions and replacements is shown in the attached Table No. <br />4 that was submitted with your report. <br />Conditions of Aprpoval <br />I approve the proposed substitute water supply plan in accordance with Section 37-90- <br />137(11), C.R.S., subject to the following conditions: <br />1. This SWSP shall be valid for the period of January 1, 2005 through December 31, 2006, <br />unless otherwise revoked, modified, or superceded by decree. If this plan will not be <br />made absolute by a water court action by the plan's expiration date, a renewal request <br />must be submitted to this office with the statutory fee (currently $217) by November 1, <br />2006. <br />2. Anew well permit must be obtained for the gravel pit in acwrdance with §37-90-137(2) <br />and (11 ), C.R.S. Any application will be evaluated subsequent to approval of this plan. <br />The provisions of §37-90-137(2) prohibit the issuance of a permit for a well to be located <br />within 600 feet of any existing well, unless the State Engineer finds that circumstances <br />so warrant after a hearing in accordance with the procedural rules in 2CCR402-5. The <br />hearing will be waived if you are able to obtain statements from the owners of all wells <br />within 600 feet, verifying that they have no objection to your use of the proposed well. <br />Should a new well permit be denied for reasons of the 600-foot spacing, or any other <br />legitimate reason, approval of this amendment will be canceled. <br />3. The total area of exposed pond surface in 2005 shall not exceed 12.93 acres and total <br />consumptive use of the mining operation shall not exceed 87.19 acre-feet of which <br />37.26 acre-feet is due to evaporative losses, 3.31 acre-feet is due to dust suppression, <br />22.06 acre-feet is due to water remove in product (4% moisture of 750,000 tons of raw <br />material) and 24.55 acre-feet is due to concrete batching. The total area of exposed <br />pond surface in 2006 shall not exceed 10.72 acres and total consumptive use of the <br />mining operation shall not exceed 57.48 acre-feet of which 30.89 acre-feet is due to <br />evaporative losses, 3.31 acre-feet is due to dust suppression, 11.77 acre-feet is due to <br />water remove in product (4% moisture of 400,000 tons of raw material) and 11.51 acre- <br />feet is due to concrete batching. Should the total consumption at the pit exceed these <br />amounts prior to the expiration date of this plan, an amendment needs to be filed with <br />this office. <br />